Marketing Flashcards
Advantages & Disadvantages of Product Led Strategies
ADVANTAGES
- Focus on quality of product/service
- Can put all money into product instead of marketing
DISADVANTAGES
- Needs of market ignored
- Changed in trends will not be accounted for
Advantages & Disadvantages of Market Led Strategies
ADVANTAGES
- Better position to adapt market changes and change quickly
- More likely for product launches to be successful
DISADVANTAGES
- Market research expensive
- Future unpredictable so high risk failure
- Constant change in organisation as needs to meet needs of market
Sampling
RANDOM SAMPLING
- Expensive
- People picked at random
- No chance of bias
QUOTA SAMPLING
- People can be substituted for similar person
- Results may be less representative as people not picked at random
Marketing Mix
PRODUCT - PRICE - PLACE - PROMOTION - PEOPLE- PROCESS - PHYSICAL EVIDENCE
Product life cycle
DEVELOPMENT - INTRODUCTION - GROWTH - MATURITY - SATURATION- DECLINE
The boston matrix
Cash Cow - High MS, Low MG
Dogs - Low MS, Low MG
Problem Child - Low MS, High MG
Stars - High MS, High MG
Penetration pricing
Initial lower price, once popular it goes to normal price
Advantages
- encourage customers to try product
- can establish loyalty
Disadvantages
- little profit during introduction
Destroyer Pricing
Prices lowered to force competitors to lower
Advantages
- Force out competition
- Increases market share
Disadvantages
- Only used by larger companies
- Could breach regulations
Pricing Strategies
1D in 4P
Penetration - Destroyer - Premium - Low - Psychological - promotional
Advantages and Disadvantages of Retailers
Advantages
- Provide after sales service
- Often closer to customer
Disadvantages
- May not have specialist product knowledge
- Product more expensive than manufacturer
Advantages and Disadvantages of Wholesalers
Advantages
- Storage costs are cut due to wholesaler buying in bulk
- Manufacturer don’t need to hold as much inventory
- Provide source of market research for manufacturer
Disadvantages
- Can cheapen look of brand
- Control of after sales handed to wholesaler
Sales promotions - Into-the-pipeline
Promotions offered to retailers or wholesalers
Credit
Materials eg window displays
Sales promotion- Out of the pipeline
Offered to customers
- Free samples
- Vouchers
- Credit
- Special offers (bog of)
